"ploughing several billion dollars into [ARKK] even for a few days is pretty ballsy"
The FT reckons a rather large trade actually wasn't tax-motivated
I’ll be at Future Proof 9/7 - 9/9. See you there?
What I’m reading…
ARKK gets Bullish
ETF.com: It was a heartbeat trade
FT: No, it wasn’t
Jeffrey Ptak (Morningstar): Agree, it probably wasn’t
Factset (Kashner): Heartbeat trade deep dive 👌👌👌
Thinking about risk
AQR: Limitation on Trader Fund Losses under the CARES Act of 2020
Looks like a heartbeat trade… but it’s not
~26 bps per year in tax drag
Funds with higher yields are susceptible to higher tax drag
“For example, we estimate that funds such as JEPQ, JNK, or QYLD might incur around 2% annualized tax drag compared to SPY’s approximate 30bps of drag.”
ChatGPT 7 announced
Bubble time
Fall is my favorite time of year
Spooky story
Wife: Brent, come look at this!
Me: [intrigued, walks over]
Wife: [points at stairs]
Me: [sees largest domestic spider… ever… probably 4” toe-to-toe]
Wife: See!
Me: [honestly, more impressed than scared]
Wife: Do something!
Me: [shoes giant spider into Tupperware, releases spider outside]
Spider: [looks at me]
Me: [looks at spider]
Spider: [pretends to be dead]
Me: You’re free, dude
Spider: [thinks it has fooled me, refuses to move]
Me: [shoes spider with magazine]
Spider: [refuses to move]
Me: [shoes spider again]
Spider: [continues staring]
Me: [stomps porch]
Spider: [runs toward door, attempting to re-enter!]
Me: [closes door to block spider, averting domestic calamity]
Spider: [runs away… finally]
Me: [nods with satisfaction at a job well done]
End